Feb11, Melbourne: Viculus Limited, a Melbourne-based company has reached an agreement to acquire five exploration licenses for graphite exploration in the Western Province of Sri Lanka.

The Company Monday announced that it signed a Heads of Agreement to acquire Euro Petroleum, which holds the contractual rights to acquire 70% of Lanka Graphite, through an issue of one Viculus share for every Euro share.

Lanka Graphite has been granted five exploration licenses over project tenements in the Western Province and has made another four exploration license applications.

Sri Lankan graphite is defined as vein or lump graphite and is unique in the world due to its purity and particle size.

Kahatagaha-Kolongaha Graphite Mine (KKGM) in Sri Lanka has been in operation since 1872, and produced over 300,000 tonnes of graphite at 90% or greater total graphitic carbon (IGC).

Sri Lanka has a longstanding reputation for its high quality crystalline vein graphite with purity levels ranging from 80-99% of carbon compared with the global average grade of 15% TGC.